Microsoft just mentioned in a Q&A session here at MIX10 in no uncertain terms that clipboard operations won’t be supported on Windows Phone 7 Series

And:

Update: We just super-double-ultra-plus-confirmed this with Microsoft – Windows Phone 7 Series will not have copy and paste functionality. There is a data-detection service built into the text-handling API that will recognize phone numbers and addresses, but Microsoft says most users, including Office users, don’t really need clipboard functionality. We… respectfully disagree?

Wow. Apple first, and now Microsoft. It could take years before it’s added, says Engadget. Copy and paste must be a very difficult technical problem on smart phones.

Microsoft said it plans to spend $9.5 billion on research and development this year, which is $3 billion more than its closest rivals. I hope a few billion dollars of that budget goes on solving the copy and paste problem. Microsoft could gain a significant lead over Apple.